Re:Stocks Are Recovering While the Economy Collapses
by ThePowerOfDirge on Friday May 01, 2020 @08:36AM
(#23041366)
Alternative hypothesis: bailouts are a temporary smoke screen for the pension and hedge funds, other financial institutions and the super rich to cash out, once they have liquidated their positions, the real crash happens.
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Re:Stocks Are Recovering While the Economy Collapses
by rileymat2 on Friday May 01, 2020 @08:56AM
(#23041509)
Alternate hypothesis:
The next year to 18 months of earnings reductions due to covid is not enough to justify a 30% drop in net present value of the market at large.
Re:Stocks Are Recovering While the Economy Collapses
by scrimps on Friday May 01, 2020 @09:18AM
(#23041701)
The the companies were accurately priced prior to COVID then that would be the case. If companies were in an overvalued bubble before COVID then that would not be the case.
Re:Stocks Are Recovering While the Economy Collapses
by amf12 on Friday May 01, 2020 @12:37PM
(#23043834)
Another alternative also is investors fleeing from emerging markets. With Fed's backing the US stock market is a better bet than some others as compared with moving to cash, bonds, Gold, etc.